Road Map to Effort Reporting Thursday, January 12, 2012

Today’s Objectives: Training on … Requirements of Time & Effort Reporting University’s Process Roles & Responsibilities Collaborate – To work, one with another; To cooperate. - Dictionary.com

Effort Reporting Is a process for employees To VERIFY the time they spent on sponsored projects To CERTIFY that we charged the correct salary to those projects Applies to ANYONE who has charged time to an award. Ex = Principal Investigator, Graduate Assistant, Administrator, Lab Tech, Co-Investigator, etc.

Regulations OMB Circular A-21 – Cost Principles for Educational Institutions OMB Circular A-133 – Compliance Supplement Applies to ANYONE who has charged time to an award. Ex = Principal Investigator, Graduate Assistant, Administrator, Lab Tech, Co-Investigator, etc.

Effort Reporting Process Referred to as a “Plan Confirmation Process” EPAF Labor Reallocation (LR) Effort Report (EVR) Actual Plan

EPAF – Electronic Personnel Action Form The form used to create the payroll record for a University employee. EPAF Allocates the percent of time the employee intends to spend on each segment of their job. For ex – Teaching responsibilities are paid from a separate fund than Research responsibilities. Plan

LR – Labor Reallocation Labor Reallocation When changes are identified, this prompts the new Allocation for the percent of time the employee intends to spend on each segment of their job. A correcting journal entry to redistribute payroll to a different funding source. Plan

EVR- Effort Verification Report Form used to certify an individual’s effort for a reporting period Effort Report (EVR) 1.Effort Reportable Salary 2.Summer Salary 3.Other Salary Actual

EVR- Effort Verification Report Effort Reportable Salary = Institutional Base Salary (IBS) Effort Report (EVR) 1.Effort Reportable Salary 2.Summer Salary 3.Other Salary 1. Institutional Base Salary (IBS): Total compensation paid to an employee for all professional activities they provide to the University within their appointment. Effort Reportable Salary = Institutional Base Salary (IBS) (1) Instruction, (2) Research, (3) Clinical, (4) Administration Actual

EVR- Effort Verification Report Faculty with 12 month appointments would NOT be eligible b/c they work all 12 months; Likewise, Full Time Staff would NOT be eligible b/c they work all 12 months. Effort Report (EVR) 1.Effort Reportable Salary 2.Summer Salary 3.Other Salary 2. Summer Salary: Salary paid during the summer months for work done outside of the normal contract period. Actual

EVR- Effort Verification Report Effort Report (EVR) 1.Effort Reportable Salary 2.Summer Salary 3.Other Salary 3. Other Salary: Incentive, Bonus, On-Call Pay, Overload, Supplemental Used to capture “Total Professional Effort”, includes all activities that comprise employee’s total W-2 wages Institutional Base Pay (Research, Instruction, Clinical, Admin) + Other Salary (Incentive, Bonus, Overload, Supplement) Total W-2 Wages Actual

QUESTION: Which activities, specifically, are categorized within each of the 3 sections on the Effort Report?

The Effort Report separates the salary figures into three distinct sections: 1)Effort Reportable Salary 2)Summer Salary 3)Other Salary 1.Teaching Research Methods course, Sept-Dec 2.Teaching Research Methods course, Jul- Aug 3.Co-Investigator on Example Grant, Sept- Dec 4.Co-Investigator on Example Grant, Jul- Aug 5.Outstanding Performance Bonus, Dec 6.Mentoring Students, Dec 7.Proposal Writing, Dec 8.Chair of St Louis Public Health Foundation, Dec 9.Investigator-Initiated Non-Funded Research, Jul 10.Investigator-Initiated Non-Funded Research, Dec

Effort Reporting Process Referred to as a “Plan Confirmation Process” EPAF Labor Reallocation (LR) Effort Report (EVR) Actual Plan

QUESTION: What happens with my Zero Credit Hour Graduate Reading Course taught during the summer? I don’t get paid for that class. Instruction means Teaching & Training Activities whether credit is granted or not

The PI has ultimate responsibility for ensuring compliance requirements are met on their sponsored awards. FACT

Effort reporting is optional. Even if I am paid on a sponsored program, if my Business Manager says “I’m exempt”, then I don’t have to do it. FICTION – If paid on a federal award, you must complete an Effort Report. Only Exception is for employees paid on weekly Time Sheets.

Effort reporting reflects a “Reasonable Estimate” of how my time was spent. FACT

The Effort Report is someone else’s attempt at showing how I spent my time. FICTION – Only you know how you spent your time.

EVR- Effort Verification Report Referred to as a “Plan Confirmation Process” Effort Report (EVR) 1.Effort Reportable Salary 2.Summer Salary 3.Other Salary 1.Every 6 months 1.January-June 2.July-December 2.Investigator must sign it 1.Or someone with “…suitable means of verification” 3.Finalized w/in 30 days of distribution Actual

Total Professional Effort Total Professional Effort is NOT based on a 40-hour work week NOR is it based on a Full Time Equivalent (FTE). Scenario – New Employee: 100% Appointment

Total Professional Effort Total Professional Effort is NOT based on a 40-hour work week NOR is it based on a Full Time Equivalent (FTE). Scenario - Add Research: 80% Appointment 20% Grant Yahoo!

Total Professional Effort Total Professional Effort is NOT based on a 40-hour work week NOR is it based on a Full Time Equivalent (FTE). Scenario - Add Admin: 75% Appointment 20% Grant 5% Admin

Total Professional Effort Total Professional Effort is NOT based on a 40-hour work week NOR is it based on a Full Time Equivalent (FTE). Scenario - Add Overload Teaching: 75% Appointment 20% Grant 5% Admin Total Institutional Base Salary (IBS) $5,000 Overload ______Teaching Total Other Salary

Incidental Pay Payment made to University employee for activities done Outside the Scope of their Total Professional Effort & Institutional Base Pay It is Minimal, Infrequent in Nature, and Outside the Scope of their Normal University Role.

Effort Reporting Process Collaborative System that expects Continuous Communication EPAF Labor Reallocation (LR) Effort Report (EVR) Actual Plan Employee, Dept Admin, Bus Mgr & Payroll Employee, Dept Chair, PI & Spon Pro

System Improvements: Pending Funds Timeliness Electronic Memo of Agreement EPAF improvements University’s System is a Work in Process

Total Professional Effort always equals 100%. FACT

Personnel who work > 40 hours/week should report 100% effort on their EVR, regardless of how many hours they work. FACT

Part time personnel should report 100% effort on their EVR, regardless of what FTE the appointment represents. FACT

If I identify an “itty-bitty little change” on my Effort Report, I don’t need to bother to adjust it with a Labor Reallocation. FACT for changes less than 6% of Institutional Base Pay

Late or Unsigned Effort Reports have no impact on the allowability of the salary expense. FICTION – late & unsigned reports reflect Unallowable Expenses

Employees should NOT be 100% funded on Sponsored Activity. FACT - The 100% question applies to Category #1 Effort Reportable Salary AND to Category #2 Summer Salary

The Research Division is responsible for repayment of any unallowable costs. FICTION – The Principal Investigator’s Department is responsible for unallowable costs.

The Time & Effort System asks me to record how I spend every minute of my day with “Time Clock” detail FICTION – Time and Effort records should support your “Reasonable Estimate”

Take Away Message: You should feel CONFIDENT about signing your Effort Report. SLU Ethics Hotline is KNOW (5669)

Effort Reporting: Financial Coordinator Business Manager Department Chair Sponsored Programs Administration